Service tax on reverse charge

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shivaji (Querist)
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31 December 2013 Hello,

i want to know is it possible that service tax paid on security seriveces under reverse charge method,be debited to serivce tax account insted of debting cenvat credit input account.

is it correct to debit to service tax account and tranfer to p&L account and to show in p&L statement.

thanking you in addvance

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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31 December 2013 Hi,
ST paid under reverse charge for security charges is eligible for CENVAT credit and if the same you are claiming then it should not be debited to P/L account, it should be debited to CENVAT credit a/c and Kept in Balance sheet

shivaji

shivaji (Querist)
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01 January 2014 Dear sir,

1.if we are not claiming the CENVAT CREDIT, is it possible to debit the ST paid to P&L account.

2.is there any condition that the security charges only relates to Production?i.e security charges for office purpose be taken for cenvat credit?

thanking you

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CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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02 January 2014 Hi,
1) Yes, If you are not claiming the CENVAT then Debit to P/c account.

2) There is no such condition in rule 2(l) of the cenvat credit rules, so that you can claim the input paid on Security charges

shivaji

shivaji (Querist)
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03 January 2014 hello

thanking you sir,